,in the ,senate of the ,united ,states1 ,october #ba1 #bjae4 ,amendments3 ,that the bill from the ,house of ,representatives 7,h4,r4 #bjh7 entitled ,an ,act to improve the disaster assistance programs of the ,small ,business ,administration41 do pass with the following 7#a7 ,on page #b1 strike lines #a through #e and insert the following3 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,recovery ,improvements for ,small ,entities ,after ,disaster ,act of #bjae or the ,,rise ,after ,disaster ,act of #bjae4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,,division ,a--,,superstorm ,,sandy ,,relief ,,and ,,disaster ,,loan ,,program ,i,m,p,r,o,v,e,m,e,n,t,s,sec4 #ajja4 ,short title4,sec4 #ajjb4 ,findings4,,title ,i--,disaster assistance improvements#aaja4 ,revised disaster deadline4#aajb4 ,use of physical damage disaster loans to construct safe rooms4#aajc4 ,reducing delays on closing and disbursement of loans4#aajd4 ,safeguarding taxpayer interests and increasing transparency in loan approvals4#aaje4 ,disaster plan improvements4,,division ,b--,,recovery ,,improvements ,,for ,,small ,e,n,t,i,t,i,e,s,sec4 #bjja4 ,short title4,,title ,i--,improvements of disaster response and loans,sec4 #baja4 ,additional awards to small business development centers1 women's business centers1 and ,,score for disaster recovery4,sec4 #bajb4 ,collateral requirements for disaster loans4,sec4 #bajc4 ,assistance to out-of-,state business concerns to aid in disaster recovery4,sec4 #bajd4 ,,fast program4,sec4 #baje4 ,use of ,federal surplus property in disaster areas4,sec4 #bajf4 ,recovery opportunity loans4,sec4 #bajg4 ,contractor malfeasance4,sec4 #bajh4 ,local contracting preferences and incentives4,sec4 #baji4 ,clarification of collateral requirements4,,title ,,ii--,disaster planning and mitigation,sec4 #bbja4 ,business recovery centers4,,title ,,iii--,other provisions,sec4 #bcja4 ,increased oversight of economic injury disaster loans4,sec4 #bcjb4 ,,gao report on paperwork reduction4,sec4 #bcjc4 ,report on web portal for disaster loan applicants4 ,a ,superstorm ,sandy ,relief and ,disaster ,loan ,program ,improvements #ajja4 ,short title ,this division may be cited as the ,superstorm ,sandy ,relief and ,disaster ,loan ,program ,improvement ,act of #bjae4 #ajjb4 ,findings 7#b7 ,on page #c1 strike line #e and insert the following3 ,i ,disaster assistance improvements #aaja4 ,revised disaster deadline 7#c7 ,on page #c1 line #ad1 insert nonprofit entity1 after homeowner14 7#d7 ,on page #d1 line #i1 strike the quotation marks and the second period and insert the following3 7,c7 ,inspector ,general review ,not later than #f months after the date on which the ,administrator begins carrying out this authority1 the ,inspector ,general of the ,administration shall initiate a review of the controls for ensuring applicant eligibility for loans made under this paragraph4 4 7#e7 ,on page #d1 line #aj1 strike ,sec4 #d4 and insert ,sec4 #aajb44 7#f7 ,on page #d1 line #bd1 insert 1 if such safe room or similar storm shelter is constructed in accordance with applicable standards issued by the ,federal ,emergency ,management ,agency after disasters4 7#g7 ,on page #e1 strike lines #a through #ba and insert the following3 #aajc4 ,reducing delays on closing and disbursement of loans ,section #g7;b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;b77 is amended by inserting before the undesignated matter following paragraph 7#i7 the following3 7#h7 ,on page #e1 line #bb1 strike 7#aa7 and insert 7#aj74 7#i7 ,on page #f1 strike lines #e through #h and insert the following3 #aajd4 ,safeguarding taxpayer interests and increasing transparency in loan approvals ,section #g7;b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;b77 is amended by inserting before the undesignated matter following paragraph 7#aj71 as added by section #aajc of this ,act1 the following3 7#aj7 ,on page #f1 line #i1 strike 7#ab7 and insert 7#aa74 7#aa7 ,beginning on page #f1 strike line #ad and all that follows through page #g1 line #bj1 and insert the following3 #aaje4 ,disaster plan improvements 7#ab7 ,beginning on page #h1 strike line #f and all that follows through page #i1 line #f1 and insert the following3 ,b ,recovery improvements for small entities #bjja4 ,short title ,this division may be cited as the ,recovery ,improvements for ,small ,entities ,after ,disaster ,act of #bjae or the ,,rise ,after ,disaster ,act of #bjae4 ,i ,improvements of disaster response and loans #baja4 ,additional awards to small business development centers1 women's business centers1 and ,,score for disaster recovery ,section #g7;b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;b77 is amended by inserting before the undesignated matter following paragraph 7#aa71 as added by section #aajd of this ,act1 the following3 7#ab7 ,additional awards to small business development centers1 women's business centers1 and ,,score for disaster recovery 7,a7 ,in general ,the ,administration may provide financial assistance to a small business development center1 a women's business center described in section #bi1 the ,service ,corps of ,retired ,executives1 or any proposed consortium of such individuals or entities to spur disaster recovery and growth of small business concerns located in an area for which the ,president has declared a major disaster4 7,b7 ,form of financial assistance ,financial assistance provided under this paragraph shall be in the form of a grant1 contract1 or cooperative agreement4 7,c7 ,no matching funds required ,matching funds shall not be required for any grant1 contract1 or cooperative agreement under this paragraph4 7,d7 ,requirements ,a recipient of financial assistance under this paragraph shall provide counseling1 training1 and other related services1 such as promoting long-term resiliency1 to small business concerns and entrepreneurs impacted by a major disaster4 7,e7 ,performance 7i7 ,in general ,the ,administrator1 in cooperation with the recipients of financial assistance under this paragraph1 shall establish metrics and goals for performance of grants1 contracts1 and cooperative agreements under this paragraph1 which shall include recovery of sales1 recovery of employment1 reestablishment of business premises1 and establishment of new small business concerns4 7ii7 ,use of estimates ,the ,administrator shall base the goals and metrics for performance established under clause 7i71 in part1 on the estimates of disaster impact prepared by the ,office of ,disaster ,assistance for purposes of estimating loan-making requirements4 7,f7 ,term 7i7 ,in general ,the term of any grant1 contract1 or cooperative agreement under this paragraph shall be for not more than #b years4 7ii7 ,extension ,the ,administrator may make #a extension of a grant1 contract1 or cooperative agreement under this paragraph for a period of not more than #a year1 upon a showing of good cause and need for the extension4 7,g7 ,exemption from other program requirements ,financial assistance provided under this paragraph is in addition to1 and wholly separate from1 any other form of assistance provided by the ,administrator under this ,act4 7,h7 ,competitive basis ,the ,administration shall award financial assistance under this paragraph on a competitive basis4 4 #bajb4 ,collateral requirements for disaster loans 7a7 ,in general ,section #g7;d77#f7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;d77#f77 is amended in the third proviso-- 7#a7 by striking #ad1jjj and inserting #be1jjj2 and 7#b7 by striking major disaster and inserting disaster4 7b7 ,sunset ,effective on the date that is #c years after the date of enactment of this ,act1 section #g7;d77#f7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;d77#f77 is amended in the third proviso-- 7#a7 by striking #be1jjj and inserting #ad1jjj2 and 7#b7 by inserting major before disaster4 7c7 ,report ,not later than #ahj days before the date on which the amendments made by subsection 7b7 are to take effect1 the ,administrator of the ,small ,business ,administration shall submit to ,committee on ,small ,business and ,entrepreneurship of the ,senate and the ,committee on ,small ,business of the ,house of ,representatives a report on the effects of the amendments made by subsection 7a71 which shall include-- 7#a7 an assessment of the impact and benefits resulting from the amendments2 and 7#b7 a recommendation as to whether the amendments should be made permanent4 #bajc4 ,assistance to out-of-,state business concerns to aid in disaster recovery 7a7 ,in general ,section #ba7;b77#c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdh7;b77#c77 is amended-- 7#a7 by striking 7#c7 ,at the discretion and inserting the following3 7#c7 ,assistance to out-of-state small business concerns 7,a7 ,in general ,at the discretion 2 and 7#b7 by adding at the end the following3 7,b7 ,disaster recovery assistance 7i7 ,in general ,at the discretion of the ,administrator1 the ,administrator may authorize a small business development center to provide advice1 information1 and assistance1 as described in subsection 7c71 to a small business concern located outside of the ,state1 without regard to geographic proximity to the small business development center1 if the small business concern is located in an area for which the ,president has declared a major disaster4 7ii7 ,term 7,i7 ,in general ,a small business development center may provide advice1 information1 and assistance to a small business concern under clause 7i7 for a period of not more than #b years after the date on which the ,president declared a major disaster for the area in which the small business concern is located4 7,,ii7 ,extension ,the ,administrator may1 at the discretion of the ,administrator1 extend the period described in subclause 7,i74 7iii7 ,continuity of services ,a small business development center that provides counselors to an area described in clause 7i7 shall1 to the maximum extent practicable1 ensure continuity of services in any ,state in which the small business development center otherwise provides services4 7iv7 ,access to disaster recovery facilities ,for purposes of this subparagraph1 the ,administrator shall1 to the maximum extent practicable1 permit the personnel of a small business development center to use any site or facility designated by the ,administrator for use to provide disaster recovery assistance4 4 7b7 ,sense of ,congress ,it is the sense of ,congress that1 subject to the availability of funds1 the ,administrator of the ,small ,business ,administration should1 to the extent practicable1 ensure that a small business development center is appropriately reimbursed for any legitimate expenses incurred in carrying out activities under section #ba7;b77#c77;,b7 of the ,small ,business ,act1 as added by subsection 7a74 #bajd4 ,,fast program 7a7 ,definitions ,section #cd7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #feg;d7a77 is amended-- 7#a7 by redesignating paragraphs 7#c7 through 7#i7 as paragraphs 7#d7 through 7#aj71 respectively2 and 7#b7 by inserting after paragraph 7#b7 the following3 7#c7 ,catastrophic incident ,the term catastrophic incident means a major disaster that is comparable to the description of a catastrophic incident in the ,national ,response ,plan of the ,administration1 or any successor thereto4 4 7b7 ,priority ,section #cd7;c77#b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #feg;d7c77#b77 is amended-- 7#a7 in subparagraph 7,a71 by striking and at the end2 7#b7 in subparagraph 7,b77vi77,,iii71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following3 7,c7 shall give special consideration to an applicant that is located in an area affected by a catastrophic incident4 4 7c7 ,additional assistance ,section #cd7;c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #feg;d7c77 is amended by adding at the end the following3 7#e7 ,additional assistance for catastrophic incidents ,upon application by an applicant that receives an award or has in effect a cooperative agreement under this section and that is located in an area affected by a catastrophic incident1 the ,administrator may-- 7,a7 provide additional assistance to the applicant2 and 7,b7 waive the matching requirements under subsection 7e77#b74 4 #baje4 ,use of ,federal surplus property in disaster areas ,section #g7;j77#ac77;,f7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;j77#ac77;,f77 is amended-- 7#a7 by inserting 7i7 after 7,f72 and 7#b7 by adding at the end the following3 7ii7 7,i7 ,in this clause-- 7aa7 the term covered period means the #b-year period beginning on the date on which the ,president declared the applicable major disaster2 and 7bb7 the term disaster area means the area for which the ,president has declared a major disaster1 during the covered period4 7,,ii7 ,the ,administrator may transfer technology or surplus property under clause 7i7 on a priority basis to a small business concern located in a disaster area if-- 7aa7 the small business concern meets the requirements for such a transfer1 without regard to whether the small business concern is a ,program ,participant2 and 7bb7 for a small business concern that is a ,program ,participant1 on and after the date on which the ,president declared the applicable major disaster1 the small business concern has not received property under this subparagraph on the basis of the status of the small business concern as a ,program ,participant4 7,,iii7 ,for any transfer of property under this clause to a small business concern1 the terms and conditions shall be the same as a transfer to a ,program ,participant1 except that the small business concern shall agree not to sell or transfer the property to any party other than the ,federal ,government during the covered period4 7,,iv7 ,a small business concern that receives a transfer of property under this clause may not receive a transfer of property under clause 7i7 during the covered period4 7,v7 ,if a small business concern sells or transfers property in violation of the agreement described in subclause 7,,iii71 the ,administrator may initiate proceedings to prohibit the small business concern from receiving a transfer of property under this clause or clause 7i71 in addition to any other remedy available to the ,administrator4 4 #bajf4 ,recovery opportunity loans ,section #g7;a77#ca7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#ca77 is amended-- 7#a7 in subparagraph 7,a7-- 7,a7 by redesignating clauses 7i71 7ii71 and 7iii7 as clauses 7ii71 7iii71 and 7iv71 respectively2 and 7,b7 by inserting before clause 7ii71 as so redesignated1 the following3 7i7 ,the term disaster area means the area for which the ,president has declared a major disaster1 during the #e-year period beginning on the date of the declaration4 2 and 7#b7 by adding at the end the following3 7,h7 ,recovery opportunity loans 7i7 ,in general ,the ,administrator may guarantee an express loan to a small business concern located in a disaster area in accordance with this subparagraph4 7ii7 ,maximums ,for a loan guaranteed under clause 7i7-- 7,i7 the maximum loan amount is #aej1jjj2 and 7,,ii7 the guarantee rate shall be not more than #he percent4 7iii7 ,overall cap ,a loan guaranteed under clause 7i7 shall not be counted in determining the amount of loans made to a borrower for purposes of subparagraph 7,d74 7iv7 ,operations ,a small business concern receiving a loan guaranteed under clause 7i7 shall certify that the small business concern was in operation on the date on which the applicable major disaster occurred as a condition of receiving the loan4 7v7 ,repayment ability ,a loan guaranteed under clause 7i7 may only be made to a small business concern that demonstrates1 to the satisfaction of the ,administrator1 sufficient capacity to repay the loan4 7vi7 ,timing of payment of guarantees 7,i7 ,in general ,not later than #ij days after the date on which a request for purchase is filed with the ,administrator1 the ,administrator shall determine whether to pay the guaranteed portion of the loan4 7,,ii7 ,recapture ,notwithstanding any other provision of law1 unless there is a subsequent finding of fraud by a court of competent jurisdiction relating to a loan guaranteed under clause 7i71 on and after the date that is #f months after the date on which the ,administrator determines to pay the guaranteed portion of the loan1 the ,administrator may not attempt to recapture the paid guarantee4 7vii7 ,fees 7,i7 ,in general ,unless the ,administrator has waived the guarantee fee that would otherwise be collected by the ,administrator under paragraph 7#ah7 for a loan guaranteed under clause 7i71 and except as provided in subclause 7,,ii71 the guarantee fee for the loan shall be equal to the guarantee fee that the ,administrator would collect if the guarantee rate for the loan was #ej percent4 7,,ii7 ,exception ,subclause 7,i7 shall not apply if the cost of carrying out the program under this subsection in a fiscal year is more than zero and such cost is directly attributable to the cost of guaranteeing loans under clause 7i74 7viii7 ,rules ,not later than #bgj days after the date of enactment of this subparagraph1 the ,administrator shall promulgate rules to carry out this subparagraph4 4 #bajg4 ,contractor malfeasance ,section #g7;b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;b77 is amended by inserting before the undesignated matter following paragraph 7#ab71 as added by section #baja of this ,act1 the following3 7#ac7 ,supplemental assistance for contractor malfeasance 7,a7 ,in general ,if a contractor or other person engages in malfeasance in connection with repairs to1 rehabilitation of1 or replacement of real or personal property relating to which a loan was made under this subsection and the malfeasance results in substantial economic damage to the recipient of the loan or substantial risks to health or safety1 upon receiving documentation of the substantial economic damage or the substantial risk to health and safety from an independent loss verifier1 and subject to subparagraph 7,b71 the ,administrator may increase the amount of the loan under this subsection1 as necessary for the cost of repairs1 rehabilitation1 or replacement needed to address the cause of the economic damage or health or safety risk4 7,b7 ,requirements ,the ,administrator may only increase the amount of a loan under subparagraph 7,a7 upon receiving an appropriate certification from the borrower and person performing the mitigation attesting to the reasonableness of the mitigation costs and an assignment of any proceeds received from the person engaging in the malfeasance4 ,the assignment of proceeds recovered from the person engaging in the malfeasance shall be equal to the amount of the loan under this section4 ,any mitigation activities shall be subject to audit and independent verification of completeness and cost reasonableness4 4 #bajh4 ,local contracting preferences and incentives ,section #ae of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7 is amended by inserting after subsection 7e7 the following3 7f7 ,contracting preference for small business concerns in a major disaster area 7#a7 ,definition ,in this subsection1 the term disaster area means the area for which the ,president has declared a major disaster1 during the period of the declaration4 7#b7 ,contracting preference ,an agency shall provide a contracting preference for a small business concern located in a disaster area if the small business concern will perform the work required under the contract in the disaster area4 7#c7 ,credit for meeting contracting goals ,if an agency awards a contract to a small business concern under the circumstances described in paragraph 7#b71 the value of the contract shall be doubled for purposes of determining compliance with the goals for procurement contracts under subsection 7g77#a77;,a74 4 #baji4 ,clarification of collateral requirements ,section #g7;d77#f7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;d77#f77 is amended by inserting after which are made under paragraph 7#a7 of subsection 7b7 the following3 3 ,provided further1 ,that the ,administrator1 in obtaining the best available collateral for a loan of not more than #bjj1jjj under paragraph 7#a7 or 7#b7 of subsection 7b7 relating to damage to or destruction of the property of1 or economic injury to1 a small business concern1 shall not require the owner of the small business concern to use the primary residence of the owner as collateral if the ,administrator determines that the owner has other assets of equal quality and with a value equal to or greater than the amount of the loan that could be used as collateral for the loan3 ,provided further1 ,that nothing in the preceding proviso may be construed to reduce the amount of collateral required by the ,administrator in connection with a loan described in the preceding proviso or to modify the standards used to evaluate the quality 7rather than the type7 of such collateral4 ,,ii ,disaster planning and mitigation #bbja4 ,business recovery centers ,section #g7;b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;b77 is amended by inserting before the undesignated matter following paragraph 7#ac71 as added by section #bajh of this ,act1 the following3 7#ad7 ,business recovery centers 7,a7 ,in general ,the ,administrator1 acting through the district offices of the ,administration1 shall identify locations that may be used as recovery centers by the ,administration in the event of a disaster declared under this subsection or a major disaster4 7,b7 ,requirements for identification ,each district office of the ,administration shall-- 7i7 identify a location described in subparagraph 7,a7 in each county1 parish1 or similar unit of general local government in the area served by the district office2 and 7ii7 ensure that the locations identified under subparagraph 7,a7 may be used as a recovery center without cost to the ,government1 to the extent practicable4 4 ,,iii ,other provisions #bcja4 ,increased oversight of economic injury disaster loans 7a7 ,in general ,section #g7;b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;b77 is amended by inserting before the undesignated matter following paragraph 7#ad71 as added by section #bbja of this ,act1 the following3 7#ae7 ,increased oversight of economic injury disaster loans ,the ,administrator shall increase oversight of entities receiving loans under paragraph 7#b71 and may consider-- 7,a7 scheduled site visits to ensure borrower eligibility and compliance with requirements established by the ,administrator2 and 7,b7 reviews of the use of the loan proceeds by an entity described in paragraph 7#b7 to ensure compliance with requirements established by the ,administrator4 4 7b7 ,sense of ,congress relating ,to using existing funds ,it is the sense of ,congress that no additional ,federal funds should be made available to carry out the amendments made by this section4 #bcjb4 ,,gao report on paperwork reduction ,not later than #a year after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to the ,committee on ,small ,business and ,entrepreneurship of the ,senate and the ,committee on ,small ,business of the ,house of ,representatives a report evaluating steps that the ,small ,business ,administration has taken1 with respect to the application for disaster assistance under section #g7;b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;b771 to comply with subchapter ,i of chapter #ce of title #dd1 ,united ,states ,code 7commonly known as the ,paperwork ,reduction ,act7 and related guidance4 #bcjc4 ,report on web portal for disaster loan applicants ,section #ch of the ,small ,business ,act 7#ae ,u4,s4,c4 #feg;j7 is amended by adding at the end the following3 7c7 ,report on web portal for disaster loan application status 7#a7 ,in general ,not later than #ij days after the date of enactment of this subsection1 the ,administrator shall submit to the ,committee on ,small ,business and ,entrepreneurship of the ,senate and the ,committee on ,small ,business of the ,house of ,representatives a report relating to the creation of a web portal to the track the status of applications for disaster assistance under section #g7;b74 7#b7 ,contents ,the report under paragraph 7#a7 shall include-- 7,a7 information on the progress of the ,administration in implementing the information system under subsection 7a72 7,b7 recommendations from the ,administration relating to the creation of a web portal for applicants to check the status of an application for disaster assistance under section #g7;b71 including a review of best practices and web portal models from the private sector2 7,c7 information on any related costs or staffing needed to implement such a web portal2 7,d7 information on whether such a web portal can maintain high standards for data privacy and data security2 7,e7 information on whether such a web portal will minimize redundancy among ,administration disaster programs1 improve management of the number of inquiries made by disaster applicants to employees located in the area affected by the disaster and to call centers1 and reduce paperwork burdens on disaster victims2 and 7,f7 such additional information as is determined necessary by the ,administrator4 4 ,secretary